As multiples by EV have largely declined, Private Equity firms have shifted focus to the middle market, though with caution, states Pitchbook. PNC Business Credit and Toppan Vite published their “PE Deal Multiples & Trends Report” based on quarterly surveys filled out by deal makers around the world.
Private Equity – Concerns about median debt levels
According to the report, median debt levels pose concerns, as for the second straight quarter, the median debt component was below 50% and in fact hit its lowest point (47%) since the survey was initiated over three years ago. The report notes that since hitting a 62% median in 2Q2014, debt levels have precipitously declined over the last three periods:
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